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IRS letters › CP2000

Notice CP2000

The IRS thinks your return is missing income

The IRS compared your return with the W-2s, 1099s and other forms it received and found something that doesn't match. It's a proposal, not a bill.

Act on it
DeadlineRespond by the date on the notice, usually 30 days from the notice date.

What it means

Payers send the IRS a copy of every W-2, 1099, 1098 and similar form. A computer matches those against your return. When something is missing or different, such as a forgotten 1099-NEC, a brokerage sale reported without its cost basis, or interest you left out, the IRS proposes new tax, interest and sometimes a 20% accuracy penalty. Nothing is final yet.

What to do

  1. Compare every item on the notice with your own records. Common mistakes are on the IRS side too, such as a sale counted at its full price because the cost basis wasn't reported.
  2. Fill in the response form that came with the notice: agree, partly agree or disagree.
  3. If you disagree, attach a signed explanation and copies of your proof, such as brokerage statements, corrected 1099s or receipts.
  4. If you agree, sign it and pay, or ask for a payment plan. You don't file an amended return for this.
  5. Need more time? Call the number on the notice before the deadline.

Don't

  • Don't ignore it. If you don't respond, the IRS sends a notice of deficiency (CP3219A). You then have 90 days to petition the Tax Court before the tax is assessed.
  • Don't file a Form 1040-X in reply. Send the response form instead.

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Is it really from the IRS?

The IRS starts contact by mail. A real notice has a notice number and your tax year, and you can see it, with any balance, in your IRS online account. The IRS never demands payment by gift card, crypto or wire transfer, and never threatens arrest. If in doubt, call the IRS using a number from IRS.gov, not one from the letter.

The law behind it

§ 6201 § 6662 § 61

Free help

The Taxpayer Advocate Service is an independent part of the IRS that helps when a problem isn't being resolved (Form 911, or 877-777-4778). Low Income Taxpayer Clinics represent people for free or a small fee, many in Spanish and other languages.

Other letters

CP575Your new EINFor your recordsCP2501Your return may not match what was reportedCheck itCP14You have a balance dueAct on it

All IRS letters

General information, not tax or legal advice. Always follow the dates and instructions printed on your own notice.